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Photo by Dick Thomas Although the U.S.–China tariff truce was extended for an additional 90 days—offering a brief break—the deal did little to reassure many exporters. At the China Cross‑Border E‑Commerce Trade Fair in Guangzhou, exhibitors from revealed they had suspended U.S. operations during earlier tariff hikes. Even with the temporary calm, uncertainty remains a constant presence in their planning process. The pattern of reacting rather than strategizing reflects a fundamental unease with the durability of U.S. trade policy. Meanwhile, platforms such as Shein, Temu, TikTok Shop, and Amazon lined up at the fair to attract vendors, offering access to the lucrative U.S. market. Amazon, for instance, emphasized how newcomers could tap into high consumer traffic using its lower-threshold infrastructure. Still, exporters admitted they felt reactive—waiting to see what happens next rather than taking proactive steps. Platforms Are Expanding, But Risk Is Rising Retail platforms are opening doors to new sellers, promising global reach and simplified logistics. But for many exporters, the U.S.'s unpredictable trade environment remains a looming threat. Seasonal exporters, like those providing Christmas decorations, shared that deals were already disrupted when tariffs first hit. Some manufacturers adapted quickly to still meet holiday shipment targets, but the early disruptions caused significant scrambling. In response, e-commerce logistics providers like EDA Group are steering clients to adopt an omnichannel approach. Many exporters are now exploring emerging markets, such as Latin America, Southeast Asia, and Africa, as alternatives—and even future hedges—against further U.S. shocks. Latin America Gains Momentum as Sellers Look Beyond U.S. Latin America is fast emerging as a key destination for Chinese cross-border sellers. Platforms like Mercado Libre are experiencing rising inquiries as exporters diversify, especially amid policy shifts. This movement reflects changing global trade patterns, where Latin America is becoming a promising alternative to the U.S. market. Meanwhile, Mexican tariffs imposed on low-cost imports—such as the new 19% duty on non-FTA shipments—have given providers like Amazon and Mercado Libre a competitive edge over Asian platforms like Shein and Temu. As American platforms benefit, exporters are encouraged to reassess their export strategies toward more receptive markets. Why This Matters For Chinese exporters, dependence on a volatile U.S. market is no longer tenable. The tariff truce may delay disruption, but it doesn't remove risk. Platforms like Amazon, Shein, and Temu offer tools for global access, but exporters are realizing that resilience comes from geographic diversification. Latin America, with its growing demand and friendly platforms, is becoming the next frontier.

Image obtained on Flickr Huawei just introduced a new tool called Unified Cache Manager (UCM) — and it’s a big deal for China’s tech scene. Instead of relying on powerful foreign-made chips that are now harder to get because of U.S. export bans, Huawei found a way to make its AI systems faster using software. What does UCM do? It tells your computer’s memory how to organize data more efficiently. That’s important because AI models work best when they can quickly access large amounts of information. During Huawei’s tests, UCM helped reduce delay time by up to 90% and made systems run 22 times faster. The Chip Problem To understand why Huawei’s UCM matters, you need to know about HBM—a special kind of memory that helps AI chips work better and faster. These chips are made by companies like Samsung, SK Hynix, and Micron, mostly based in South Korea and the U.S. Beijing has asked Washington to relax its chip export rules, but no big changes have happened yet. The problem? The U.S. has restricted the export of these chips to China, so Huawei and others can’t easily buy them. This is part of the tech tensions between the U.S. and China, as both sides try to stay ahead in AI and semiconductors. By improving how existing memory is used, Huawei’s new tool could reduce its need for these banned chips. Open Source and Local Alternatives Huawei isn’t keeping UCM to itself. The company plans to make it open-source this September, meaning other Chinese tech firms can use it too. This helps grow China’s own AI ecosystem. And it’s not just UCM. Huawei also plans to open up its Compute Architecture for Neural Networks (CANN) — its version of Nvidia’s popular CUDA software — to developers. Together, these tools are meant to reduce China’s dependence on U.S. tech. What Else Is China Doing? Huawei is not alone. Other Chinese companies, like DeepSeek, are also finding creative ways to work with limited chip resources. At the same time, local chipmakers like Yangtze Memory and Changxin Memory are trying to catch up by building their own advanced memory chips. But they still have a long way to go. Most are working on HBM2, while foreign competitors are already moving on to HBM4, which is much faster. Tech and Politics: Still Tied Together Beijing has asked Washington to relax its chip export rules, but no big changes have happened yet. In the meantime, China is telling local companies to stop using chips from Nvidia and AMD, especially for government projects. Huawei, already under U.S. sanctions, is becoming a national symbol of China’s push to be more self-reliant. With tools like UCM, it's showing that software innovation can help fill the hardware gap.

Photo by Levart OpenAI’s latest effort to trademark its new AI model “GPT-5” in mainland China has been officially rejected. This comes after previous failed attempts to register other names, including “ChatGPT,” “GPT-4,” and even future-sounding titles like “GPT-6” and “GPT-7.” These decisions were made by the China National Intellectual Property Administration (CNIPA), which oversees trademarks in the country. The agency argued that “GPT,” which stands for “generative pre-trained transformer,” is a generic technical term that cannot be protected as a distinct brand. This reflects a broader problem for OpenAI, not just in China. The U.S. Patent and Trademark Office also refused to grant protection for “ChatGPT” and “GPT” earlier this year, citing similar concerns—that the terms describe functionality, not a unique identity. China’s AI Ecosystem: A Surge in “GPT” Copycats Despite OpenAI being unable to trademark “GPT” in China, local Chinese companies have flooded the system with more than 400 applications for trademarks containing the same three letters. Many aim to use the GPT name as part of their branding, riding on the global popularity of OpenAI’s tools. Because OpenAI has no formal market entry in China, authorities may view its trademark applications as premature—or even irrelevant. Some of these filings come from legitimate players in the AI space, while others appear to be opportunistic. Either way, the trend highlights the growing appetite for AI innovation in China—and the potential for consumer confusion if OpenAI lacks legal tools to protect its name. Why OpenAI Is Locked Out—At Least for Now While OpenAI's ChatGPT and related tools are available in over 160 countries, they remain officially blocked in mainland China and Hong Kong. Chinese users who want to access ChatGPT typically rely on VPNs or third-party platforms. Developers also use workaround infrastructure like proxy servers to tap into OpenAI’s API. Because OpenAI has no formal market entry in China, authorities may view its trademark applications as premature—or even irrelevant. With the Chinese government heavily promoting homegrown tech firms like Baidu, Alibaba, and iFlytek, the bar for foreign companies to gain IP protection remains high, especially in such a strategically sensitive sector. GPT-5: A Powerful Tool Without a Home in China OpenAI’s GPT-5 was unveiled just recently, promoted as its most advanced model yet. CEO Sam Altman described it as being like a “PhD-level expert in anything,” aiming to put intelligence at the center of every business. GPT-5 has been widely adopted by developers, startups, and enterprises around the world. But without access to China—a massive and fast-growing market for AI—the company’s global rollout faces a serious limitation. And without legal recognition of its trademark, OpenAI has no mechanism to stop lookalike apps, counterfeit products, or misleading branding by others in China. The Stakes for AI’s Global Power Struggle The rejection of OpenAI’s trademark in China highlights the challenges of competing in an environment where legal systems and tech ecosystems are not aligned. It also reveals the tension between global brand building and local control in one of the world’s most strategically important markets for AI. If OpenAI wants to enter China legally in the future, it may need to explore partnerships, licensing agreements, or even tailor its offerings to local regulations—steps that could dilute its brand identity but open doors for long-term growth. For now, though, China’s AI race continues without OpenAI in the lead.

Photo by Mario Roberto Durán Tesla’s Shanghai plant, its largest production base worldwide, delivered 67,886 Model 3 and Model Y vehicles in July. This marked an 8.4 percent decline compared with the same period last year and a 5.2 percent drop from June, according to data from the China Passenger Car Association (CPCA). From January to July, deliveries totaled 432,360 units, down 13.7 percent year on year. The drop comes against the backdrop of a robust domestic electric vehicle (EV) market, where overall sales surged 35 percent in the first seven months of 2025 to 7.6 million units. The divergence highlights a growing challenge for the U.S. automaker in the world’s largest EV market. Domestic Brands Accelerate While Tesla’s figures dipped, local competitors continued to build momentum. Hangzhou-based Leapmotor delivered 50,129 vehicles in July, marking its third consecutive monthly record and a 4.4 percent increase over June. The brand’s affordable EVs, priced near 100,000 yuan (US$13,900), have become a hit with cost-conscious buyers. Xpeng, another domestic player, also broke its delivery record with 36,717 units sold. Sales rose 6.1 percent from June and surged 229 percent compared with a year earlier. Its Mona 03, priced at 119,800 yuan (US$16,700), offers an appealing alternative at roughly half the cost of Tesla’s base Model 3, which starts at 235,500 yuan (US$32,800). The success of these brands underscores a shift toward value-driven EV purchases, where price competitiveness and local appeal matter more than premium branding. Tesla’s Shrinking Share Tesla’s share of the mainland EV market has dropped sharply. CPCA data shows the company held just 3.8 percent of the market in June, down from 6.9 percent a year earlier and far below its 16 percent share in 2020 when the Shanghai Gigafactory opened. The premium EV segment is losing traction as budget-conscious consumers choose domestic options. Beijing’s push to end a price war has also kept discounts in check, further benefiting local brands offering lower starting prices. Fighting Back With New Models Tesla is preparing new products in an effort to regain lost ground. An upgraded Model 3 with an 800 km range is set to launch in China next month. The Shanghai plant is also scheduled to begin production of the Model Y L, a six-seat SUV with an extended wheelbase, this autumn. These models aim to appeal to middle-income buyers seeking space and longer range, but their success will depend on pricing and how quickly Tesla can reassert its relevance. Meanwhile, domestic rivals are moving aggressively. Li Auto, one of the few profitable EV makers in China, has launched the Li i8, a six-seat SUV starting at 321,800 yuan (US$44,800). Nio introduced the Onvo L90, also a six-seater, priced from 265,800 yuan (US$37,000). Both undercut or rival Tesla in features while aligning with local consumer expectations. A Changing Consumer Landscape Tesla’s challenges in China reflect more than just competition. Economic pressures, a weaker property market, and shifting attitudes toward foreign brands are reshaping consumer behavior. Domestic EV makers are not only offering lower prices but also tailoring products to local tastes, including software integration and user-focused features that resonate with buyers. For Tesla, which once dominated the segment, it looks like staying competitive will require more than just new models, it’ll need to keep attentive as the Chinese road signs fragile loyalty, rising price sensitivity, and a market where domestic brands are increasingly setting the pace.

Image edited by THE CHINA NOW U.S. tariffs of up to 145% on Chinese-made clothing have caused a dramatic drop in exports. In May 2025, U.S. apparel imports from China plummeted to $556 million, the lowest in over two decades. To avoid these costs, global retailers are shifting orders to Vietnam, Bangladesh, India, and Mexico, where demand for apparel production surged by 29% during the same period.

Photo from Getty Images Innovent Biologics, a biotech company based in Jiangsu, has received official approval to launch mazdutide—a new drug targeting weight loss and blood sugar control.

Photo by Galitskaya Check if you're eligible for visa-free travel to China here Since late 2023, China has made it easier for foreign visitors to enter without a visa. Originally, travelers could only stay visa-free in select cities like Xiamen or Kunming for up to six days (144 hours). Now, China has expanded this policy nationwide, allowing visa-free stays of up to 10 days (240 hours) in 24 provinces.

Photo by prill China has just launched construction of what will become the largest hydropower dam in the world, located on the lower part of the Yarlung Tsangpo River in Tibet. That river becomes the Brahmaputra when it flows into India and then Bangladesh.

Photo by Nikada Dubai is quickly becoming one of the world’s rising tech hubs—and Chinese companies are playing a major role in that transformation. Once heavily reliant on oil, Dubai has reduced oil’s share in its GDP from 50% last century to less than 1% today. Now, it’s pouring resources into tech—and attracting global heavyweights like ByteDance, Huawei, Alibaba, and Pony.ai.

Photo by THE CHINA NOW Luxury brands are making a notable pivot in China. As consumer confidence weakens and high-end spending slows, major international fashion groups are turning to a new kind of presence on the ground: cafés. China’s personal luxury market shrank by 18 percent in 2023, and forecasts for 2025 point to flat or modest growth at best. That’s a sharp contrast to the post-pandemic rebound that once drove global optimism. At the same time, leading luxury groups are reporting declining performance in China: LVMH’s sales in Asia (excluding Japan) dropped 11 percent in the first quarter of 2024. Richemont and Burberry also posted single-digit declines in the mainland and broader region. This cooling market is prompting global brands to rethink how they connect with Chinese consumers. Fashion Meets Coffee In recent months, multiple fashion giants have opened upscale cafés inside or alongside their flagship stores in major Chinese cities. In Shanghai, LVMH launched “The Louis,” a striking three-story boat-shaped concept space that includes both a café and fine dining area. Celine, also under LVMH, opened a garden-themed café nearby. Armani introduced a 350-square-meter café in its Beijing location at China World Mall. Spanish retailer Zara unveiled its first-ever Asia-based café, “Zacaffè,” inside a 2,500-square-meter flagship store in Nanjing. Spanish retailer Zara unveiled its first-ever Asia-based café, “Zacaffè,” inside a 2,500-square-meter flagship store in Nanjing. While some brands have previously experimented with lifestyle pop-ups and collaborative food concepts, the recent wave marks a more permanent and integrated approach. These cafés are not positioned as new profit centers but as retail strategies—ways to transform luxury spaces into immersive environments where consumers linger, engage, and return. Lower Stakes, Higher Visibility Unlike luxury goods, which may only be purchased once or twice a year, a branded coffee or dessert is accessible weekly, if not daily. That repeatability allows brands to build consistent consumer touchpoints at relatively low operational cost. As retail foot traffic becomes more selective and online shopping remains strong, in-store cafés give brands an added reason to draw customers in—and to extend their time inside. These physical locations become experiential spaces, not just sales floors. Cafés also support another goal: social relevance. Branded drinks, stylish interiors, and carefully curated menus are highly shareable on Chinese social media platforms. In a competitive environment where visibility is key, a co-branded latte can reach more people than a billboard. Experiential Strategy Expands This isn’t limited to coffee. In Shanghai, Prada has opened “Mi Shang,” an upscale restaurant designed to reflect the brand’s aesthetic. Louis Vuitton operates “The Hall” in Chengdu, a full-service dining experience set inside a restored cultural site. These locations emphasize that brands are now investing in full-scale experiential destinations—places where retail, lifestyle, and design converge. With the Chinese market becoming more mature and selective, luxury groups are rethinking how value is perceived. More than a product, the experience of interacting with a brand—whether over lunch or coffee—is becoming a core part of its relevance strategy. The Road Ahead The rise of in-store cafés is not a trend born of abundance, but of necessity. In an environment marked by slower GDP growth, high youth unemployment, and ongoing property market pressures, luxury consumption has become more cautious. Yet instead of retreating, global fashion houses are embedding themselves into everyday life in smaller, more sustainable ways. Their response to weak demand is not silence—but visibility through experience. In doing so, they’re redefining what luxury means in China today: not just ownership, but atmosphere, memory, and shareability.

Photo by Rattanakun For years, studying abroad was considered the golden ticket to a better future for many young Chinese. A degree from a foreign university—especially from the U.S., U.K., or Australia—meant status, opportunity, and international experience. But that narrative is changing. More and more students are choosing to remain in China, and one of the biggest reasons is simple: they no longer have to leave to get a world-class education. China’s Universities Are Climbing Fast In recent years, Chinese universities have made rapid progress on the world stage. Schools like Tsinghua University and Peking University now regularly rank alongside Ivy League and top U.K. institutions. In fact, Tsinghua University is ranked as high as 11th globally, according to the U.S. News Best Global Universities list. This rise is no accident. China has poured investment into its higher education system—building research capacity, hiring globally recognized faculty, and encouraging international cooperation. Domestic students now have access to top-tier facilities, competitive academic programs, and growing international recognition without leaving their home country. Better Options at Home, Fewer Risks Abroad Studying overseas used to offer something Chinese universities couldn’t: international prestige and broader job opportunities. But today, staying in China offers many of the same benefits—without the uncertainty. Political tensions, especially with the United States, have made visa approvals more difficult. Some Chinese students have even had visas revoked or denied due to concerns over national security or links to sensitive academic fields. Meanwhile, the COVID-19 pandemic revealed the risks of relying on international travel, and families now think more carefully about health, safety, and the possibility of disrupted education. With stronger universities at home and fewer guarantees abroad, many students are rethinking the need to leave China at all. Domestic Prestige and Career Paths Another reason for staying? China’s own employers now view top local universities as just as competitive—if not more so—than mid-level foreign institutions. A degree from Tsinghua or Fudan may carry more weight in some job markets than one from a lesser-known overseas school. And with China’s economic focus shifting toward innovation, AI, clean tech, and advanced manufacturing, many students want to be closer to the industries that are hiring. Chinese universities are also increasingly tied into these national priorities, offering practical experience and career-ready pathways at home. Cost and Value Matter More Than Ever Money also plays a role. Foreign tuition is expensive—and many families are questioning whether the return on investment is worth it. One study found that every ¥10,000 increase in foreign tuition leads to a noticeable drop in Chinese students choosing to go abroad. In contrast, staying in China offers high-quality education at a lower cost, with less disruption and more immediate relevance to the domestic job market. Not an End to Study Abroad, But a Shift None of this means Chinese students are abandoning the idea of studying abroad altogether. Top foreign universities still attract many of China’s brightest. But the idea that studying overseas is the best—or only—path to success is fading. In 2024, recent reports suggest a growing share of outbound Chinese students now come from non-elite universities, reflecting a broader range of participants in the overseas education market—though exact figures vary and are not consistently published. A New Era for Global Education China’s rise as an educational power is reshaping global student flows. Instead of a one-way pipeline to the West, more students are staying, returning sooner, or looking to nearby destinations in Asia. For foreign universities, this is a challenge. For Chinese students, it’s a sign of confidence in their country’s progress—and in the growing quality of education right at home.

Photo by Solen Feyissa Chinese companies now hold the top four spots in the global ranking of open-source AI models. According to LMArena, a respected platform built by researchers from the University of California, Berkeley, models from Chinese developers like Moonshot AI, DeepSeek, Alibaba, and MiniMax have outperformed those from Google and Meta. LMArena’s ranking system is widely used in the AI industry, including by OpenAI and Google. It compares how models respond to real user prompts, and then human voters choose which answers are better. Kimi K2, DeepSeek, Qwen: The New Global Leaders At the top of the list is Kimi K2 , a model launched by the Chinese startup Moonshot AI  just days ago, on July 11. People liked it for how natural and even humorous its responses felt. Moonshot has already released two versions of Kimi as open source, meaning anyone can use or modify them. In second place is DeepSeek R1‑0528 , a powerful model built by a startup in Hangzhou. It’s especially strong in conversations and reasoning tasks. DeepSeek has been releasing open-source models since the end of 2024, and its tools are becoming more widely used. Third place went to Qwen 3‑235B , a massive model with 235 billion parameters developed by Alibaba Cloud . It was praised for its strong performance in logical tasks. In fact, three of Alibaba’s Qwen models are also in Hugging Face’s top 10 open-source model rankings globally. What makes these Chinese models stand out isn’t just how smart they are. It’s how open they are. Why Open Source Is a Game-Changer What makes these Chinese models stand out isn’t just how smart they are. It’s how open they are. All these companies are publishing their models freely, so anyone—from researchers to startups—can use and adapt them. That’s different from companies like OpenAI, which keep their best models closed. By open-sourcing their work, Chinese firms are helping developers across the world build faster, test new ideas, and apply AI to local needs—from different languages to unique industries. It also puts pressure on big U.S. companies to become more open in return. Even Nvidia Is Paying Attention Nvidia CEO Jensen Huang, one of the most influential voices in AI, visited China last week and publicly praised these Chinese models. He called DeepSeek, Moonshot, and Alibaba’s AI “some of the best open reasoning models in the world.” That’s not just talk. Nvidia is also preparing to restart shipments of its powerful H20 chips to China, following a breakthrough in U.S.-China trade talks last month. Huang confirmed that Nvidia will work with Chinese firms on developing new GPUs to support industrial AI development, showing that the U.S. chip giant sees real value in China’s AI progress. A Turning Point in the Global AI Race The rise of China’s open-source models is a major shift in the global tech landscape. It shows that innovation no longer belongs only to Silicon Valley. By releasing high-performing, open models, Chinese firms are making AI more accessible and collaborative around the world. With support from companies like Nvidia and recognition in global rankings, China’s AI companies are no longer catching up—they’re helping set the pace.